Renewable credits linked to a store card, a trap?

Many people know that a revolving credit is very expensive to use. But it is possible to subscribe a revolving credit without even knowing it. We invite you to discover it through the following story.

Mr. Durand goes to a hypermarket type store, or to a major brand specializing in furniture, sports, home appliances or DIY. He stops in front of an article he plans to buy for several months, only he does not have the sum of 1000 euros needed. A salesman approaches and offers his help.

The technical questions are discussed

then the seller asks Mr DURAND if he has the store card, the latter responds in the negative. It’s a shame for Mr Durand. Eh yes ! If he had this card, he could pay in 3 times without charge. It’s nerd not to benefit, right? Especially since the card is free because it costs 10 or 15 euros and it will offer a good purchase of the same value. Great. Mr Durand will be able to pay in 3 times without paying a dime of interest. But where is the trap?

It will still have paid 10 or 15 euros of fees! Because most of these good gifts given in exchange are restrictive. In addition, just visit some online forums to realize that thousands of customers are still waiting for their vouchers!

This credit will be renewable and without time to think since the initial contract (Card + Credit revolving) was signed during the first visit to the store. (Except sometimes for purchases in 3 times, but, not always … only sometimes ….).

His card even allows him to withdraw liquid … with the revolving credit rate! If Mr Durand thought about it, he would realize that he was going to buy his newspaper or his scoop of sliced ​​country bread with a credit of 16 or 19%!

If it is a payment in 4 or more installments

It is not free. Worst ! It is a revolving credit with an interest rate that can reach 19.99% wear. (Maximum rate authorized by the Bank of France for the first quarter of 2016).

In conclusion, it is best to avoid signing a revolving credit. On the other hand it may be interesting to contract a conventional consumer credit, as proposed Union loan. The reason is simple, when you have settled the last installment of a conventional conso loan, the loan agreement is closed.

While with a revolving credit this is not the case

It should also be known that the contribution of 10 or 15 euros is annual, this amount will be charged to the account of Mr. Durand each year on the anniversary date. (Whether he used the account or not in the year).